Contributions Suspension

Government contributions to the Super Fund were suspended between 2009 and 2017. In December 2017 contributions resumed, with the Fund to receive an initial $500 million payment in the financial year to 2018. Contributions will increase over the next four years, with $1b planned for the Fund in 2019, $1.5b in 2020 and $2.2b in 2021. The Government's full statement on the resumption of contributions is available to read here, and the Guardians' statement can be read here.

What impact has the suspension of Government contributions had on the Fund?

The table below summarises the capital contributions and Fund returns as at 30 June 2018, both with and without the capital contributions suspension. The calculation. the methodology of which has been agreed with Treasury, uses publicly available Treasury material for all of the necessary data, including capital contributions, fund returns, and government debt instrument yields. It assumes that the same investment choices would have been made had contributions not been stopped; and that opportunities to add value would have been perfectly scalable.

*(assuming additional contributions would have earned the same return as the actual Fund did over this period).

For further information:

Sections 42, 43, and 44 of the NZS Act specifically outline the process for calculating capital contributions to the Fund; the amount of required annual contribution; and the process for managing lesser amounts of annual contribution if relevant

NZ Treasury projections, in graphical format, of net and smoothed NZS expenditure as a % of GDP and NZSF Fund Size as a % of GDP

For further details on the funding formula see the NZ Treasury website.